Ord 675
ORDINANCE NO 675
AN ORDINANCE' OF THE CITY OF POWAY, CALIFORNIA, AMENDING CHAPTER
3.28 OF THE POWAY MUNICIPAL CODE, AMENDING SECTIONS 3.28 010,
3.28.020,3.28030,3.28050,3.28070,3.28080, 3.28110, 3.28120, 3.28130,
ADDING SECTION 3.28 125, AND DELETING SECTIONS 3.28040 AND 3.28 090,
ALL PERTAINING TO PURCHASING
WHEREAS, the City of Poway enacted its Purchasing Code, codified at Chapter
3.28 of the Poway Municipal Code, in 1982; and
WHEREAS, the City of Po way last revised its Purchasing Code in 1992; and
WHEREAS, there is a need to update the City's Purchasing Code, in order to
increase the City Manager's purchasing authority from the $10,000 limit which was
established in 1988; and
WHEREAS, there is a need to update or clarify other portions of the Purchasing
Code, including the provisions relating to exceptions to the bidding requirements, and
approval of contract amendments.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF POWAY DOES
ORDAIN AS FOLLOWS
Section 1 Section 3.28 010 is modified to read as follows
3.28010 Adoption.
In order to establish efficient procedures for the purchase of supplies, equipment,
materials and services, to secure the same for the City at the lowest possible cost
commensurate with the quality needed; to exercise positive financial control over
purchases, and to ensure that purchases are consistent with the City's adopted budget;
a purchasing system is adopted
Section 2: Section 3.28 020 is modified to read as follows.
3.2802C Establishment of Centralized Purchasing Division
There is created a Centralized Purchasing Division under the City Manager or
the City Manager's designee in which is vested the authority for the purchase of
supplies, equipment and services
Section 3 Section 3.28 030 is mo::Jified to read as follows
'3.28030 Exceptions to centralized purchasing.
Ordinance No 675
Page 2
The Director of Administrative Services or designee may, when authorized by the
City Manager in writing, authorize a department or division to purchase supplies and
equipment when such purchases may be made more advantageously or expeditiously
by the respective department or division.
Section 4 Section 3.28 040 is deleted in its entirety
Section 5 Section 3.28 050 is modified to read as follows.
3.28 050 Unauthorized purchases
No City department head, division head or other employee shall make or order
the purchase of any supplies, equipment, materials or services or make any contract
without the prior approval, in writing, of the Director of Administrative Services.
Section 6 Section 3.28 070 is modified to read as follows.
3.28 070 Formal bidding procedure
Except as otherwise provided in this chapter, any purchase which exceeds
$50,000 in value for supplies, services, and equipment or the amount established by
Public Contracts Code Section 20162 and succeeding amendments for contracts on
public works projects, will be by formal bid
A. Notices inviting sealed bids shall be published at least twice, not less than five
days apart, the first time being 10 days before the date of the opening of the bids, in a
newspaper of general circulation in the City, or it shall be posted in at least three places
in the City that have been designated by ordinance as the places for posting public
notices.
B Notices inviting bids shall include a general description of the articles to be
purchased, where bid forms and specifications may be obtained, and the time, date and
place for the opening of bids.
C When deemed necessary by the Director of Administrative Services, bidders
security may be prescribed in the public notice inviting bids. Bidders shall be entitled to
return of bid security; provided, however, that a successful bidder shall forfeit the bid
security upon the bidder's refusal or failure to execute the contract within 10 days after
the notice of award of contract has been mailed. The City Council may, on refusal or
failure of the successful bidder to execute the contract, award it to the next lowest
responsible bidder If the City Council awards the contract to the next lowest bidder, the
amount of the lowest bidder's security shall be applied by the City to the contract price
differential between the lowest bid and the second lowest bid, and the surplus, if any,
shall be returned to the lowest bidder If the City Council rejects all bids presented, due
10 the failure of the successful bidder to execute the contract, and readvertises, the
Ordinance No 675
Page 3
amount of the lowest bidder's securiiy may be used to offset the cost of receiving new
bids and the surplus, if any, shall be returned to the lowest bidder
D Sealed bids together with bidder's security shall be submitted to the Director
of Administrative Services or designee. The bid shall be so identified on the envelope.
Bids shall be opened in public at the date, time and place stated in the public notices
inviting the bids. Any bid received after the scheduled time of the bid opening shall be
returned to the bidder unopened A tabulation of all bids received shall be available for
public inspection during regular business hours for a period of not less than 30 calendar
days after the bid opening.
E. At its sole discretion, the City Council may reject any and all bids presented
and readvertise for bids pursuant to the procedure prescribed above In the event no
bids are received or all bids are rejected, the City Council may, in accordance with
Public Contracts Code Section 20167, and any amendments thereto, direct the Director
of Administrative Services or designee to proceed pursuant to paragraphs relating to
open market procedure or competitive negotiations.
F If two or more bids received are for the same total amount or unit price, quality
and service being equal, the City Council may at its discretion accept the bid it chooses
with or without further negotiations with the tie bidders.
G The City shall have authority to require performance and labor and materials
security before entering a contract in such amount as it finds reasonably necessary to
protect the best interests of the City If the City requires security, the form and the
amount of the security shall be described in the notice inviting bids. The notice inviting
bids may provide that security may be posted in the form of a surety bond, a letter of
credit drawn on an institution located in San Diego County and approved by the City
Attorney, or a cash deposit.
Section 7 Section 3.28 080 is modified to read as follows.
3.28 080 Exceptions to bidding requirements
3.28 080 Exceptions to bidding requirements.
Where otherwise required by this Chapter, formal or informal bidding procedures
may be waived, at the discretion of the City Manager or his or her designee when.
A. An emergency requires that the supplies, services or equipment be acquired
from the nearest available source or vendor
B The supplies, services or equipment can be obtained from only one vendor or
source
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Page 4
C The supplies or equipment are required to match or be compatible with other
supplies or equipment previously purchased by"the City
D The City Manager or City Council has established a standardized type or
make of supplies or equipment for the City
E. The City Manager, or his or her designee, determines that competitive bidding
is impossible, or not in the public's interest.
F Services, other than a public project, as defined by Public Contracts Code
Section 20161, are to be performed entirely by City forces.
G For public projects, as defined by Public Contracts Code Section 20161, no
bids are received, or the City Council has rejected all bids pursuant to Public Contracts
Code Section 20167, and any amendments thereto
H The value of the supplies, services or equipment to be purchased does not
exceed $1,000
Open market purchases shall, wherever possible, be based on at least three bids
and shall be awarded to the lowest responsible bidder The lowest responsible bidder
will be the individual or firm who submits a responsible bid based on total cost, and
which is determined to be the most advantageous to the City
Section 8 Section 3.28 090 is deleted in its entirety
Section 9' Section 3.28110 is modified to read as follows.
3.28110 Cooperative purchasing.
Purchase of supplies, services and equipment by contract, arrangement and
agreement for the cooperative purchasing programs with the State, the County and any
other public or municipal corporation of the State may be made by the Director of
Administrative Services when the administering agency has made their purchase in a
competitive manner
Section 10' Section 3.28120 is modified to read as follows
3.28120 Award and execution of contracts.
Except in emergency situations, all contracts for supplies, services and
equipment in an estimated amount of $50,000 or more and public works projects in an
estimated amount of $5,000 or more shall be awarded by the City Council. Contracts for
supplies, services and equipment in an amount less than $50,000 shall be executed by
the City Manager or the City Manager's designee. No contract shall be approved by the
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Page 5
City Councilor City Manager unless the expenditure is consistent with the City's
adopted budget.
Section 11 Section 3.28 125 is added to read as follows
3.28 125 Amendments to contracts
Approval of amendments to contracts for supplies, services or equipment, other
than contracts for public works projects, shall be consistent with the authority limits set
forth in Section 3.28120 The authority to approve an amendment shall be determined
based on the total cost of the contract, including the amendment.
Section 12: Section 3.28 130(A) is modified to read as follows.
3.28 130 Insurance and licensing
A. A policy of general liability insurance covering the contractor for claims and
judgments arising from their products or activities for the City The policy shall be for a
minimum of $1,000,000 and extended by endorsement naming the City as additional
insured. The $1,000,000 limit may be adjusted up or down by the Director of
Administrative Services or designee in conjunction with the City Attorney based upon
the type contract or service being considered and the potential liability exposure
Section 13 This Ordinance shall be codified
EFFECTIVE DATE. This Ordinance shall take effect and be in force thirty (30)
days after the date of its passage; and before the expiration of fifteen (15) days after its
passage, it shall be published once with the names of members voting for and against
the same in the Po way News Chieftain, a newspaper of general circulation published in
the City of Poway
Introduced and first read at a Regular Meeting of the City Council of the City of
Poway held the 6th day of May 2008, and thereafter PASSED AND ADOPTED at a
regular meeting of said City Council held the 20th day of May 2008
ATTEST
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Salam Hasenin, City Clerk
Ordinance No 675
Page 6
STATE..)F CALIFORNIA )
) ss
COUNTY OF SAN DIEGO )
I, Salam Hasenin, City Clerk of the City of Poway, do hereby certify that the
foregoing Ordinance No 675, was duly adopted by the City Council at a meeting of said
City Council held on the 20th day of May 2008, and that it was so adopted by the
following vote
AYES BOYACK, HIGGINSON, REXFORD, CAFAGNA
NOES NONE
ABSENT EMERY
DISQUALIFIED' NONE
~ 2-/ J;~"l,
Salam Hasenin, City Clerk
City of Poway